Industrial demand
Unlike gold, silver's demand comes not only from investors but also from a large number of industrial uses. Silver is widely used in electronics, solar energy, medical equipment and automobile manufacturing. Fluctuations in industrial demand have a direct impact on silver prices. When the economy grows and industrial production is active, silver demand increases, driving up prices.
Market sentiment and speculation
Silver prices are also affected by speculation, especially when financial markets are uncertain. Since the silver market is relatively small, speculators can influence its price fluctuations with smaller funds, so silver prices are usually more volatile than gold.
Silver Derivatives Market
Similar to gold, silver's derivatives markets (such as futures, options, ETFs, etc.) also have an impact on silver prices. Speculation, trading volume, and the sentiment of market participants can lead to large fluctuations in silver prices.
